Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Bottom-Up

<ul>
<li>New Relic reported a solid quarter pushing shares up ~18% during the regular trading session as y/y revenue growth accelerated while gross margin and operating income continued to expand.</li>
<li>We like New Relic’s fundamentals and transformation plan driven across the business. The company raised the outlook for FY23 revenue as 3QFY23 results exceeded guidance. </li>
<li>New Relic invites investors to an Analyst Day in May, where the company will announce the FY24 financial plan details and give more color about the updated GTM strategy. </li>
</ul>


New Relic reported a solid quarter pushing shares up ~18% during the regular trading session as y/y revenue growth accelerated while gross margin and operating income continued to expand.
We like New Relic’s fundamentals and transformation plan driven across the business. The company raised the outlook for FY23 revenue as 3QFY23 results exceeded guidance. 
New Relic invites investors to an Analyst Day in May, where the company will announce the FY24 financial plan details and give more color about the updated GTM strategy. 


New Relic: Impressive 3QFY23. Profitable Growth Accelerated Driven By Efficiency Initiatives

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<p><strong><em>*We Anxiously Await HSBC’s US Departure: </em></strong>According the Financial Times on November 28, 2020, HSBC is considering offloading its entire US retail network - although a full exit from other businesses in the US is unlikely. The recommendation of a US exit is expected to be presented to the board as early as this week, although the Group is scheduled to provide an update on its plans for its French and US businesses in February 2021; </p><p><em><strong>*HSBCNA Should Be Sold: </strong></em>HSBCNA is a chronic mess, and there is absolutely no need for HSBC to maintain a full commercial/retail banking presence in the US. It cannot earn a positive return under its current structure; credit is again about to fall off a cliff; does not earning; NIMs are among the lowest in the USA; and capital is shortly about to fall below regulatory guidance. Further, the bad acquisitions and regulatory headaches should spur management to cut and run in the US. Knowing HSBC management as we do, they will continue making the same mistakes over and over again; and    </p><p><em><strong>*Hong Kong Tax Rate Continues To Mask Management’s Global Mistakes: </strong></em>When your core subsidiary in Hong Kong has a statutory corporate tax rate of 16.5% and the organization is not subject to global taxation, low taxes can mask the many mistakes that HSBC makes. </p>

*We Anxiously Await HSBC’s US Departure: According the Financial Times on November 28, 2020, HSBC is considering offloading its entire US retail network - although a full exit from other businesses in the US is unlikely. The recommendation of a US exit is expected to be presented to the board as early as this week, although the Group is scheduled to provide an update on its plans for its French and US businesses in February 2021; *HSBCNA Should Be Sold: HSBCNA is a chronic mess, and there is absolutely no need for HSBC to maintain a full commercial/retail banking presence in the US. It cannot earn a positive return under its current structure; credit is again about to fall off a cliff; does not earning; NIMs are among the lowest in the USA; and capital is shortly about to fall below regulatory guidance. Further, the bad acquisitions and regulatory headaches should spur management to cut and run in the US. Knowing HSBC management as we do, they will continue making the same mistakes over and over again; and    *Hong Kong Tax Rate Continues To Mask Management’s Global Mistakes: When your core subsidiary in Hong Kong has a statutory corporate tax rate of 16.5% and the organization is not subject to global taxation, low taxes can mask the many mistakes that HSBC makes. 

HSBC Holdings Plc – Act Now, You’ll Never See These Prices Again

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/sbi-cards-payment" target="_blank" data-smartkarma-citation="entities:28662:1" rel="noopener">SBI Cards (SBICARDS IN)</a> is the second-largest credit card issuer in India, with an 18.0% market share of the Indian credit card market as measured by the number of credit cards outstanding as of 30 September 2019. SBI Cards will commence trading on Monday, 16 March. SBI Cards set its IPO price at Rs755 per share, which is the upper limit of the IPO price band.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/sbi-cards-and-payment-ipo-price-range-s-polarized-appeal" target="_blank" rel="noopener">our valuation note</a>, we stated that the signs point to a good post-IPO performance, and we are inclined to put on our "growth" hat and participate in the IPO. However, since then, the markets globally are in turmoil due to the covid-19 outbreak. While trying to predict market moves in the current environment is challenging, we think that SBI Cards will have a tepid debut (likely flat). On a longer-term basis, we think the valuation remains appealing to growth-oriented investors willing to look past the market turmoil.</p></div></div></div>

SBI Cards (SBICARDS IN) is the second-largest credit card issuer in India, with an 18.0% market share of the Indian credit card market as measured by the number of credit cards outstanding as of 30 September 2019. SBI Cards will commence trading on Monday, 16 March. SBI Cards set its IPO price at Rs755 per share, which is the upper limit of the IPO price band.In our valuation note, we stated that the signs point to a good post-IPO performance, and we are inclined to put on our "growth" hat and participate in the IPO. However, since then, the markets globally are in turmoil due to the covid-19 outbreak. While trying to predict market moves in the current environment is challenging, we think that SBI Cards will have a tepid debut (likely flat). On a longer-term basis, we think the valuation remains appealing to growth-oriented investors willing to look past the market turmoil.

SBI Cards and Payment IPO: Trading Debut In Unprecedented Times

<p><a href="https://www.smartkarma.com/entities/sbi-cards-payment" target="_blank" data-smartkarma-citation="entities:28662:1" rel="noopener">SBI Cards (SBICARDS IN)</a> is set to open its books from 2 to 5 March. It is expected to announce an IPO price range of Rs750-755 per share, according to press reports. The rumoured range will imply a market cap exceeding Rs700 billion which is 17% above the initial expectations of Rs600 billion. </p><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/sbi-cards-and-payment-ipo-initiation-creditworthy" target="_blank" rel="noopener">our initiation note</a>, we stated that peeling back the benefit of market growth, SBI Cards’ fundamentals offer more positives than negatives. Our updated valuation analysis suggests that the IPO price range will polarize its appeal to a targeted set of investors. On balance, the signs point to a good post-IPO performance, and we are inclined to put on our "growth" hat and participate in the IPO. </p></div>

SBI Cards (SBICARDS IN) is set to open its books from 2 to 5 March. It is expected to announce an IPO price range of Rs750-755 per share, according to press reports. The rumoured range will imply a market cap exceeding Rs700 billion which is 17% above the initial expectations of Rs600 billion. In our initiation note, we stated that peeling back the benefit of market growth, SBI Cards’ fundamentals offer more positives than negatives. Our updated valuation analysis suggests that the IPO price range will polarize its appeal to a targeted set of investors. On balance, the signs point to a good post-IPO performance, and we are inclined to put on our "growth" hat and participate in the IPO. 

SBI Cards and Payment IPO: Price Range's Polarized Appeal

<p><a href="https://www.smartkarma.com/entities/sbi-cards-payment" target="_blank" data-smartkarma-citation="entities:28662:1" rel="noopener">SBI Cards (SBICARDS IN)</a> is the second-largest credit card issuer in India, with an 18.0% market share of the Indian credit card market as measured by the number of credit cards outstanding as of 30 September 2019. SBI Cards will likely raise around Rs95 billion ($1.3 billion) at a valuation of Rs600 billion ($8.4 billion) and the IPO will be launched in the first week of March, according to press reports.</p><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/sbi-cards-and-payment-ipo-initiation-creditworthy" target="_blank" rel="noopener">our initiation note</a>, we stated that peeling back the benefit of market growth, SBI Cards’ fundamentals offer more positives than negatives. Our valuation analysis suggests that that the rumoured Rs600 billion valuation will be attractive particularly for growth-oriented investors.</p></div>

SBI Cards (SBICARDS IN) is the second-largest credit card issuer in India, with an 18.0% market share of the Indian credit card market as measured by the number of credit cards outstanding as of 30 September 2019. SBI Cards will likely raise around Rs95 billion ($1.3 billion) at a valuation of Rs600 billion ($8.4 billion) and the IPO will be launched in the first week of March, according to press reports.In our initiation note, we stated that peeling back the benefit of market growth, SBI Cards’ fundamentals offer more positives than negatives. Our valuation analysis suggests that that the rumoured Rs600 billion valuation will be attractive particularly for growth-oriented investors.

SBI Cards and Payment IPO: Valuation Insights

United States

Capital One Financial Corporation is a diversified bank. The Bank, through its subsidiaries, offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients both domestically and internationally.  Capital One has bank locations in Connecticut, Louisiana, New Jersey, New York, and Texas.

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Capital One Financial (COF US)

New Relic: Impressive 3QFY23. Profitable Growth Accelerated Driven By Efficiency Initiatives

New Relic surprised investors and reported better-than-expected 3QFY23 results driven by consumption and efficiency initiatives

Andrei Zakharov

HSBC Holdings Plc – Act Now, You’ll Never See These Prices Again

HSBC HOLDINGS PLC: Financial Times Suggesting Board Will Be Presented With Options On US Franchise This Week. This Was A Long Time In Coming.

Thomas J. Monaco

SBI Cards and Payment IPO: Trading Debut In Unprecedented Times

SBI Cards (SBICARDS IN) is the second-largest credit card issuer in India, with an 18.0% market share of the Indian credit card market as measured...

Arun George

SBI Cards and Payment IPO: Price Range's Polarized Appeal

SBI Cards (SBICARDS IN) is set to open its books from 2 to 5 March. It is expected to announce an IPO price range of Rs750-755 per share, according...

Arun George

SBI Cards and Payment IPO: Valuation Insights

SBI Cards (SBICARDS IN) is the second-largest credit card issuer in India, with an 18.0% market share of the Indian credit card market as measured...

Arun George

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